Sydney light rail has become 'a scandal': Foley

CHAOS surrounding Sydney’s troubled light rail project reached new levels today as the Spanish contractor building it accused the NSW Government of “misleading or deceptive conduct” in court.

Acciona is seeking an extra $1.1 billion from taxpayers of the state after it claimed in court that the government induced it to enter the agreement on a false premise.

It claims Transport for NSW engaged in deception in relation to the contract for the 12-kilometre network from Circular Quay to Kingsford and Randwick in the eastern suburbs.

In its statement of claim filed in the NSW Supreme Court, the company is seeking more than $1.1 billion for the loss and damage it says it’s suffered. Acciona said part of the negotiations related to the treatment of utility services, particularly along George Street in the CBD, which included electricity distribution infrastructure owned by Ausgrid.

Construction has come to a standstill in Sydney. Picture: SuppliedSource:Supplied

“Acciona (and other members of the Connecting Sydney Consortium) were prevented from communicating with Ausgrid in relation to how changes to utilities owned by Ausgrid were to be dealt with as part of the project,” the document states. Acciona was reliant upon TfNSW to ensure that utility services treatment in relation to Ausgrid “was appropriately dealt with”.

But the Ausgrid guidelines ultimately provided to the company required substantially more costly treatments than what had been set out in the TfNSW contract, according to the statement of claim.

Had the company known Ausgrid had not agreed to the guidelines as set out in the contract, it would not have signed on, as it exposed Acciona to significant additional costs, risks and delays.

Spanish contractor Acciona is seeking $1.106 billion compensation from the NSW government over the Sydney light rail project.Source:News Corp Australia

The company claims its additional costs, including contractual penalties for project delays directly caused by the additional works, amount to more than $1.1 billion.

The case was mentioned in court on Friday when the parties agreed to a procedural timetable before a directions hearing on May 25.

Premier Gladys Berejiklian on Friday said when a party signed a contract “we expect them to deliver on the contract”.

“Yes, they (Acciona) have made some disputes or claims against us (but) we’ve said this is the contract and this is what you have to deliver,” the Liberal leader told 2GB.

Transport Minister Andrew Constance has called on the Spanish firm to end an alleged “go-slow” and deliver what they’re obliged to deliver.

Spanish contractor Acciona has accused Transport for NSW of “misleading or deceptive conduct”.Source:Supplied

The light rail, originally budgeted to cost $1.6 billion before a $500 million blowout, was to be completed in 2018 before that deadline was pushed back to 2019.

The Labor opposition suggests it may not be operational for many years.

The Premier, however, maintains the project remains on track. “They (Acciona) have put a claim in and all the deadlines, all the time frames, all the budgets are what they are,” Ms Berejiklian told reporters in Sydney on Wednesday.

“As of today, the timeline is there and the budget is there.

“People want to see the job completed on time and on budget — that’s my intention.”

However, the construction of the project rolls on indefinitely — businesses along its route continue to suffer.

NSW Premier Gladys Berejiklian wants the new light rail system up and running sometime in 2019, Picture: AAP Image/Paul BravenSource:AAP

Angela Vithoulkas, a City of Sydney councillor and small business owner whose cafe has been directly affected by the light rail works is livid.

Ms Vithoulkas told news.com.au earlier this week that the construction work has been a “horror story” and a “blame game” is underway between the government and the builders.

“They’re already two years behind schedule in my (area) and when people ask me when it will be finished I have one reply: ‘never’,” she said.